Stock market preview, Tuesday July 30, 2024: Equity benchmark indices – the BSE Sensex and the NSE Nifty are likely to start today’s trading session on a tepid note tracking weak cues from the Asian peers.
At 07:00 AM, GIFT Nifty futures quoted around 24,875, as against its counterpart close of 24,910 yesterday. On Monday, the Nifty came within striking distance of the 25,000 milestone as it hit a high of 24,999.75, and eventually ended flat at 24,836.
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On the earnings front – Castrol, Dixon Technologies, Exide, Firstsource Solutions, Gail, Indus Towers, IOC, Macrotech Developers (Lodha), Tata Consumer Products, Titagarh Rail, Torrent Power and Varun Beverages are few of the prominent companies scheduled to announce Q1 results today.
Global mood
The US market ended mixed last night as investors’ awaited Fed rate meeting outcome on Wednesday. Investors are expected Fed to set the stage for a September rate cut tomorrow. Dow Jones slipped 0.1 per cent, while the S&P 500 and NASDAQ edged 0.1 per cent higher.
The US Federal Reserve will announce its July policy meeting decision on Wednesday. Market participants will closely track the US Fed commentary for remarks over the interest rate trajectory.
The US 10-year bond yield dipped below 4.2 per cent. Among commodities, Gold futures quoted around $2,380 levels, while WTI Crude Oil futures declined to 7-week lows around $75 per barrel.
Asian markets traded with a negative bias this morning. Japan’s Nikkei slipped 0.6 per cent. Kospi and Taiwan declined around 1 per cent each, while Straits Times was flat.
FII, DII trading activity
Foreign institutional investors (FIIs) were net sellers of shares worth Rs 2,474.54 crore in the cash market on July 29. Domestic institutional investors (DIIs), on the other hand, net bought stocks to the tune of Rs 5,665.54 on Tuesday.
In the derivatives segment, FIIs net bought 21,303 contracts of index futures for a consideration of Rs 1,672.61 crore on July 29. FIIs net bought 21,419 contracts of Bank Nifty futures, and 698 MidCap Nifty futures, while sold 1,095 contracts of Nifty 50 futures.
Pursuant to which, FIIs index futures long-short ratio rose to 1.9:1. This ratio signifies that FIIs hold near about 2 long positions in index futures for every bet on the short side. The FIIs longs in index futures rose to 65.4 per cent.
Trading strategy for Tuesday, July 30 – Should you be a buyer or seller in the Nifty, Bank Nifty today? Here’s what market experts recommend:
Dhupesh Dhameja, Technical Analyst, SAMCO Securities
As long as the Nifty closes above 24,800, the strategy remains ‘buy on dips.’ With the index still trading above key averages and strength indicators in a bullish position, the price sustaining above 24,700 levels suggests further upside potential. Resistance is expected at 24,870, and if breached, the index could reach the 25,000-mark.
The Bank Nifty faced strong rejection at the psychological level of 52,000 and experienced a pullback from its trading range breakdown, highlighting the selling pressure. The index faced is trading below its 10-20 DEMA. Investors are advised to adopt a ‘Sell-on-Rise’ strategy. With the index facing resistance at 52,000 and closing below 51,500, shows a weakness, Index will find an immediate support is at 51,000.
Om Mehra, Technical Analyst, SAMCO Securities
The outlook for Nifty remains positive with some potential consolidations. The key support levels remain around 24,650 and 24,600. A break above 25,020 could push the index towards 25,180 in the upcoming sessions.
The Bank Nifty formed a shooting star pattern on the daily time-frame indicating a short-term probable weakness. The index remains below its 20-day Moving Average (DMA), with immediate support around the 50-day DMA at 50,800. A drop below the 50-DMA could weaken the short-term bullish trend.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates
Technically, the Nifty formed a small bearish candle on daily scale, but the trend remains upward. Immediate support for the index is placed near 24,770, followed by 24,600. On the upside, 25,000 will act as a key hurdle for Nifty in the short term.
The Bank Nifty found resistance near a short-term trend line, which is placed around 52,300 levels. Thus, 52,000-52,300 will serve as resistance zone for Bank Nifty, while on the downside, 51,000 will act as strong support.
Osho Krishan, Senior Analyst – Technical & Derivatives, Angel One
The intermediate support for the Nifty 50 index is seen around 24,600, followed by sacrosanct demand around the 24,500 zone. On the higher end, 25000 is very much in the vicinity now, and a decisive breakthrough could lead the next leg of the rally toward the 161.8 per cent retracement of the previous week’s swing at 25,340 on an intermediate basis.
Stocks in F&O ban period
India Cements is the only stock in the futures & options (F&O) ban period on Tuesday.
New listings
V L Infraprojects and and VVIP Infratech to debut today on the NSE and BSE respectively. The grey market premium data suggests a robust listing for both the SME-based IPOs. The stocks are likely to double investors’ wealth post listing today.
Primary market update
Akums Drugs and Pharmaceuticals Rs 1,857 crore IPO to open for subscription on Tuesday in the price band of Rs 646 – Rs 679 per equity share.
Meanwhile in the SME segment, Kizi Apparels Rs 5.58 crore IPO to open for subscription at a fixed price of Rs 21 per share on the BSE.
Similarly, 4 more SME IPOs namely – Bulkcorp International, Rajputana Industries, Ashapura Logistics and Sathlokhar Synergies E&C Global to open for subscription on the NSE.
The price band for Bulkcrop is Rs 100 – Rs 105 per share; Rajputana Rs 36 – Rs 38 per share; Ashapura Logistics Rs 136 – Rs 144 per share and Sathlokhar Rs 133 – Rs 140 per share. All 4 IPOs will close on Augsut 1, 2024.
Espirit Stones and S A Tech Software India IPOs close today. These issues at the end of Day 2 were subscribed 16.1 times and 89.80 times, respectively, on the NSE.
